Headache for parliament as Western Cape keeps R1.2bn irregular tender

04 December 2024 - 17:06 By SINESIPHO SCHRIEBER
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The spotlight is on communications and digital technologies minister Solly Malatsi as to what decision he will take on a R1.2bn tender. File photo.
The spotlight is on communications and digital technologies minister Solly Malatsi as to what decision he will take on a R1.2bn tender. File photo.
Image: Facebook

The Western Cape education department's decision to continue with a R1.2bn tender after a forensic report and the auditor-general flagged irregularities with the contract has resulted in MPs wanting the department investigated by the Special Investigating Unit (SIU).

The tender was for the supply of computer networking equipment, ICT hardware and network support services to state schools for five years. 

The tender awarding process had been facilitated by the State Information Technology Agency (Sita) for the department. A forensic report from Cliffe Dekker Hofmeyr, a law firm, investigated the tender and found it was irregular.  

Four irregularities were flagged in the tender awarded to Blue Networks Consortium (BNC). The company was awarded the tender despite having two different pricing options for the same service.

The company failed to meet the requirement that 90% of electrical cables must be from a local producer. Sita also unfairly disqualified one of the bidders, Dimension Data.

The department's legal adviser Ian Steyn told parliament's basic education committee on Wednesday the contract would remain in place because government had “no legal basis” to review the tender despite irregularities.

“The contract remains in place and is still honoured by the department,” he said.

The department was not aware of any irregularities when it awarded the tender to BNC, said Steyn.

“The reason for the contract to still be in place is that upon due diligence the department concluded none of the irregularities highlighted in the Cliff Dekker report constitute reviewable irregularities that would pass the process in court to allow the award made to be set aside.”

Three months after the tender was awarded in August 2023, Sita withdrew its recommendation, stating irregularities and requested the tender processes start afresh.  

Steyn said the department would follow its own process taking into consideration legal and financial risk. He said the tender was under consideration by a senior legal counsel to see whether a review was warranted.  

This ruffled the feathers of the MPs in the committee, who wanted the tender to be investigated by the SIU.

TimesLIVE


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